Energy Recovery (NASDAQ:ERII) and Trio-Tech International (NYSE:TRT) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
This table compares Energy Recovery and Trio-Tech International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
40.8% of Energy Recovery shares are owned by institutional investors. Comparatively, 20.5% of Trio-Tech International shares are owned by institutional investors. 17.4% of Energy Recovery shares are owned by company insiders. Comparatively, 45.3% of Trio-Tech International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Energy Recovery and Trio-Tech International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Energy Recovery||$86.94 million||6.87||$10.91 million||$0.18||59.17|
|Trio-Tech International||$34.47 million||0.39||$970,000.00||N/A||N/A|
Energy Recovery has higher revenue and earnings than Trio-Tech International.
Risk & Volatility
Energy Recovery has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Trio-Tech International has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Energy Recovery and Trio-Tech International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Energy Recovery presently has a consensus target price of $10.25, indicating a potential downside of 3.76%. Given Energy Recovery’s higher probable upside, analysts plainly believe Energy Recovery is more favorable than Trio-Tech International.
Energy Recovery beats Trio-Tech International on 10 of the 11 factors compared between the two stocks.
About Energy Recovery
Energy Recovery, Inc., together with its subsidiaries, designs, manufactures, and markets various solutions for industrial fluid flow markets worldwide. The company operates through Water, and Oil & Gas segments. The Water segment designs, engineers, manufactures, and supplies various energy recovery devices (ERDs), including positive displacement isobaric ERDs and centrifugal-type ERDs; manufactures and supplies specialized high-pressure feed and circulation pumps that are used in the reverse osmosis desalination process; and provides various spare parts and repair, and field services, as well as engages in the various commissioning activities. It serves large engineering, procurement, and construction (EPC) firms; original equipment manufacturers (OEMs); and end-users and service providers. The Oil & Gas segment provides VorTeq, a solution for hydraulic fracturing applications; MTeq, a solution for mud pumping applications; and IsoBoost and IsoGen turbocharger solutions for gas processing and pipeline applications. It serves oilfield service companies, international and national oil companies, exploration and production companies, OEMs, and EPC firms. Energy Recovery, Inc. was founded in 1992 and is headquartered in San Leandro, California.
About Trio-Tech International
Trio-Tech International, together with its subsidiaries, provides manufacturing, testing, and distribution services to the semiconductor industry. The company's Testing Services segment offers stabilization bake, thermal shock, temperature cycling, mechanical shock, constant acceleration, gross and fine leak, electrical, static and dynamic burn-in, and vibration testing, as well as reliability lab and microprocessor equipment contract cleaning services. This segment also provides qualification testing services that test small samples of output from manufacturers for qualification of their processes and devices. Its Manufacturing segment manufactures front-end semiconductor test equipment, such as artic temperature controlled wafer chucks used for test, characterization, and failure analysis of semiconductor wafers and other components; and wet process stations for cleaning, rinsing, and drying semiconductor wafers, flat panel display magnetic disks, and other microelectronic substrates. This segment also manufactures back-end products comprising autoclaves and highly accelerated stress test equipment; burn-in equipment and boards; and component centrifuges and leak detection equipment. The company's Distribution segment distributes complementary products, including environmental chambers, handlers, interface systems, vibration systems, shaker systems, solderability testers, and other semiconductor equipment, as well as components, such as connectors, sockets, LCD display panels, and touch-screen panels. Its Real Estate segment invests in and rents real estate properties. The company primarily serves semiconductor chip manufacturers or testing facilities that purchase testing equipment. The company operates in the United States, Singapore, Malaysia, Thailand, and China. Trio-Tech International was founded in 1958 and is headquartered in Van Nuys, California.
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